U.S. Airborne LiDAR Market Overview:

U.S. Airborne LiDAR Market is expected to garner $135 million by 2022, registering a CAGR of 12.1% from 2016-2022. Airborne LiDAR is primarily an aircraft mounted laser system that is designed to measure the 3-D coordinates of the earth surface. It is an effective technology to acquire surface data with high accuracy. LiDAR systems provide rapid 3D data collection of long linear objects such as roads, railway tracks, waterways, coastal zone, and power lines among others. They have narrower swath compared to optical sensors and are most effective in capturing information.

In U.S., aerial LiDAR systems are widely used in forestry management & planning, flood modeling, urban/city modeling, pollution modeling, coastline management, transport planning, and cellular network planning. A recent trend to collect higher point densities by flying lower and slower to collect multiple data sets is widely adopted in the industry. Scientists reported that by utilizing this method, the system is able to measure the ground with 520 or even up to 40 points per square meter. This method is expected to provide accurate and precise mapping of the object and is widely employed for topographic surveys in the U.S. Accuracy of aerial LiDAR systems in the past few years has been enhanced due to the latest advancements in LiDAR sensors.

The U.S. government is investing a huge amount in airborne LiDAR for defense and civil engineering applications to increase the accuracy of operations and decrease the risk factors involved. According to the 2017 fiscal year budget, the U.S. military sector is projected to spend $4.61 billion on procuring drones, and is expected to purchase 31 unmanned aerial systems that has fueled the growth of the airborne LiDAR market. Furthermore, it has witnessed an increase in demand in infrastructure projects as well. For instance, in 2014, Bartlett & West, engineering and technology provider partnered with Surveying and Mapping (SAM) of Austin to provide aerial LiDAR services for eight Missouri Department of Transportation (MoDOT) mapping projects. The use of airborne LiDAR in all these projects and various government investments in various industries are anticipated to fuel the growth of the overall airborne LiDAR market.

Segment Review

The airborne LiDAR market is segmented by components, applications, and end users.

Low cost dronebased imaging has boosted the U.S. airborne LiDAR market growth. Drones provide high-precision 3D models at a very low cost compared to other competing technologies such as airplanes and satellites. For instance, NASA revealed that the cost of Landsat 8 imaging satellite was around $300,000; however, an automated mapping drone such as sense Flys eBee RTK costs around $25,000. Moreover, drones for consumer and profession applications cost around $1,000. Apart from low cost, drones even render excellent results compared to other two technologies.

The various stakeholders involved in the value chain include component suppliers, system assemblers, utility solution manufacturers, and end-users. These stakeholders perform various roles in specific areas and add more value to the overall product. Advancement in technologies offered are expected to create an elevated growth potential for each stakeholder in the value chain.

3.3.1 Moderate bargaining power of suppliers due to high demand, customized services, domestic players and low switching cost
3.3.2 Moderate bargaining power of buyer due to presence of viable substitute and limited quality product providers
3.3.3 Moderate threat of substitute due to cost-effective substitute and price insensitive buyers
3.3.4 Higher capital investments, presence of established players and government regulations have led to low threat of new entrants
3.3.5 Moderate industry rivalry due to presence of few dominant players, high exit barriers due to significant initial investment